Latest / Markets with Megan: A Quick Financial Markets Update / GDP: Did Economists Get It Wrong (Again)? | S2 E081 | 09-26-25

Transcript

GDP: Did Economists Get It Wrong (Again)? | S2 E081 | 09-26-25 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  Megan.Horneman: This economy keeps beating all of the economists' expectations.
• 0:03
  Megan.Horneman: It's Friday, September the 26th, and this is Markets with Megan.
• 0:07
  Megan.Horneman: If you like this podcast, you can subscribe, hit that alarm bell, also share it with your friends, family, or colleagues.
• 0:13
  Megan.Horneman: We're here today to go over some of the economic data that we that we've received this week.
• 0:17
  Megan.Horneman: And yesterday on Thursday, we received the final reading on third or second quarter GDP in the US.
• 0:24
  Megan.Horneman: And it was revised higher.
• 0:26
  Megan.Horneman: The expectation is that it would come in at 3.3%.
• 0:29
  Megan.Horneman: It was actually it actually came in at 3.8%.
• 0:32
  Megan.Horneman: It's the best quarterly GDP that we've seen since the third quarter of 2023.
• 0:38
  Megan.Horneman: Now let's break down some of the reasons behind that increase from the second reading that we saw.
• 0:45
  Megan.Horneman: It was all the consumer.
• 0:47
  Megan.Horneman: Personal consumption was revised almost a full percentage higher compared to what we got in the second reading of GDP.
• 0:55
  Megan.Horneman: It was revised from 1.6% to 2.5%.
• 0:58
  Megan.Horneman: We're still seeing weakness on some of the CapEx spending.
• 1:03
  Megan.Horneman: That remained unchanged, but spending on structures actually came in a little bit better.
• 1:10
  Megan.Horneman: When you look at exports, exports were revised slightly lower.
• 1:15
  Megan.Horneman: So that's a negative for GDP.
• 1:17
  Megan.Horneman: Imports were revised also lower.
• 1:22
  Megan.Horneman: So imports were revised slightly higher.
• 1:26
  Megan.Horneman: So that again impacted that reading.
• 1:29
  Megan.Horneman: And then government consumption, that was revised a little bit better, but still in negative territory.
• 1:34
  Megan.Horneman: That's all we have to report on GDP.
• 1:36
  Megan.Horneman: Still a strong economy.
• 1:37
  Megan.Horneman: We'll be back with the when we get the Fed's preferred inflation indicator for the month of August.
• 1:44
  Megan.Horneman: Again, if you want a history of our podcast, you can go to marketswithmegan.fm.
• 1:48
  Megan.Horneman: Thank you.